RealTime IT News

Nortel Warns

Telecom equipment and networking stocks that soared during the day on Ciena's strong earnings came back to earth after hours when Nortel Networks warned.

The ISDEX http://www.wsrn.com/apps/ISDEX/ rose 10 to 362, and the Nasdaq climbed 61 to 2552. The S&P 500 added 10 to 1326, and the Dow rose 95 to 10,891. Volume was unchanged at 1.1 billion shares on the NYSE, and 2 billion on the Nasdaq. Advancers led 16 to 13 on the NYSE, and 22 to 15 on the Nasdaq. For earnings reports, visit our earnings calendar at http://www.wsrn.com/apps/earnings/internet.xpl and reported earnings at http://www.wsrn.com/apps/earnings/ireported.xpl. For after hours quotes and news, visit our after hours trading site at http://www.afterhourstrading.com.

Nortel plunged 6.50 to 23.25 after hours after warning that it will lose 4 cents a share, 20 cents below estimates. Nortel noted that it was now "seeing a faster and more severe economic downturn in the United States" than previously expected. Stocks that rose strongly during the day on Ciena's earnings fell after hours, among them Corning , Juniper , and Sycamore . Hewlett-Packard met estimates and traded slightly lower after hours. Dell missed estimates by a penny and also traded down slightly. Dell announced 4% layoffs during the day.

Ciena rose 12 3/8 to 89 during the day, but traded down to 85 after the Nortel warning. Ciena beat estimates by 3 cents with 18-cent earnings and raising forward guidance higher.

Also during the day, Critical Path , halted for two weeks on accounting irregularities, finally reopened and plunged 7 1/8 to 2 15/16. Fourth-quarter earnings will be revised from a loss of 16 cents to a loss of 27-30 cents, and an investigation is ongoing.

Wireless Facilities fell 4 3/4 to 26 after beating estimates by 2 cents with 24-cent earnings, but JP Morgan downgraded the company on earnings visibility concerns.

Amazon.com lost 1/8 to 14 5/16 on a Prudential Sell rating. Sell ratings are rare on Wall Street, but Amazon seems to collect them.

Check Point , up 4 11/16 to 94 7/8, and Internet Security Systems , up 8 7/16 to 77, received Strong Buy ratings from Lehman Brothers.

Broadcom , up 2 9/16 to 83 3/4, and Applied Micro , up 1 1/16 to 48 3/16, benefited from CIBC World Markets comments that communications chip companies had fallen below their long-term growth rates.

Openwave rose 2 5/16 to 59 1/2 on a CIBC Buy rating. Competitor Comverse , which won an AT&T Wireless contract yesterday, rose another 7 11/16 to 107 3/4.

Interwoven surged 5 13/16 to 25 7/8 on a Prudential Volpe Strong Buy rating.

Homestore.com rose 4 15/16 to 34 7/8 on news of market share gains and hopes that a Department of Justice investigation will soon end.

Loudeye slipped 1/4 to 2 1/32 despite beating estimates. iXL lost 5/16 to 1 3/4 after missing estimates. Rare Medium surged 5/8 to 2 15/16 on strong earnings. Deltathree.com was unchanged at 2 3/32 despite beating estimates.

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The Nasdaq gapped up above its